Pay now and play later! Guide to paying off your debt

We got ourselves a special guest today folks, a very impressive story on how a man and his wife were swallowed up by almost $340,000 in student loans and their journey to pay off the loans to create a better future for themselves. This topic has been highly neglected on my site since I have never faced such debt burden before in my life (yet) and I'm very ignorant when it comes to finding a solution to a problem that millennials face leaving college as well as millions of Americans who have consumer debt of some sort. So, I called in reinforcements and knew a guy who knows how to deal with this like a pro. Compounding dollar fans, give a nice and warm welcome to Josh from https://www.moneylifewax.com/

What’s up Jimmy?

Hope I can present some solid info for your readers today on how to knock out student loan debt, consumer debt, enhance your savings and grow your wealth. Quick background on me. My name is Josh Haste and Money, Life, Wax: Because Student Loans Suck is the site I operate designed to help young people beat debt and live a great life.

Between my wife’s Doctorate and my Master’s, we had well over $300,000 in student loans. I repeat, $300,000 and I was a teacher. Today we sit at $195,000 with ways to go. But more importantly then where we are, it is where we are going and where we came from. Without the mindset we developed through some mentorship and reading, we would still be paying the minimums and the interest would keep driving up the amount owed! I have to laugh, one student loan’s minimum was $8.00, the balance was $1,300. That was not even covering the monthly interest!

So maybe you don’t have that much student loan debt, maybe you have auto debt or some consumer debt. My advice: get rid of your debt ASAP. By leveraging your money, banks are making enough money every day already. You paying interest that just means money for them and less for your wallet. Here is an easy approach to understanding why you want to be debt free.

How much interest are you paying each month?

For each loan you have, or debt, figure out the amount of your payment each month.
Then, figure out how much of that payment is going towards interest.
Take that amount and times it by the number of months you will pay (the life of the debt).
That amount of money is how much you will essentially give to the banks.

Now, imagine if you had that amount of money, whatever it is for you, and you could take Jimmy’s advice and invest it? Or maybe you could use it to complete a debt snowball on your future house (read here about the snowball concept). Look at things long-term and not at their present value.

What is present value?

The cost of my car is only $15,000. Yeah but in 3 years it will be worth $4,000. Thinking long term means take that same $15,000 and with 10 years in the market it will likely double. Take that approach with your debt. Pay off everything so all the wasted interest money can go towards your future!

So in parting, I always like to leave any readers with a few simple steps that have helped us become student loan slayers – because they suck.

1. Create a budget – know what you bring in, know what goes out, and figure out how much you got left at the end of each month. Look to slash things like cable, groceries, and high spending categories. (More on creating a budget here!)

2. Pay yourself first – once you have the left-over amount, that is money that should go towards paying debt or investing. Pay yourself first, then your bills, then have fun. Remember think long term

3. Have goals and a game plan. Goals will hold you accountable and keep you on track. Having a game plan (we are paying off all student loans by 2019) helps accomplish your goals.

4. Read more! Read books and blogs to always grow your mindset when it comes to finance and wealth. Always be open to learning more and trying new ideas. With a caveat to that last statement, always consult professionals first when it comes to making large financial decisions.

5. Last word of advice: find a successful person in whatever it is you are looking for. If you want to be the best musician, it would be wise to find a successful musician. Same goes with wealth and financial literacy. If you want to understand money find someone who does. With the internet that is much easier than it used to be.

If you have any questions, feel free to visit me over at MLW and thank you Jimmy for letting me guest post. I love to see young ambitious people growing their financial mindset. Pay now and play later, or play now, and pay forever. The choice is yours!

And thank you Josh for taking the time to write out this very informative article that will be useful to any folks facing any debt. Be sure to visit Josh's site and learn more on how you can slay your debt in no time. https://www.moneylifewax.com/ as well as other social media platforms

Twitter: @moneylifewax
Linkedin: Josh Hastings
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